Classic candlestick form: bald bare feet

Want to see market trends and directions at a glance?

Then we have to know about the bald barefoot K-line, which is a powerful tool in technical analysis.

In this article, we will introduce the basics of bald barefoot candlestick, how to form it, and how to identify it.

What is bald bare feet?

A bald bare foot is a single candlestick pattern that has only a solid, no upper and lower shadow lines.

In Japanese, the word “marubozu” means shaved head or cut short. It graphically describes how this candlestick looks like a shaved head without hair or shadow.

Experienced traders often use bald bare feet pattern to determine whether the asset price trend will reverse, or continue.

Bald bare foot form is divided into the following two types: bald bald sun and bald bald bald yin line.

How are bald bare feet formed?

Baldheaded Barefoot Sun WireRefers to the opening price of the K-line on the day is the lowest price, the closing price is the highest price, the K-line only solid, no upper and lower shadow lines.

Bald bald sun means that the long is actively attacking from the opening, and the stock price ends up at the highest price. Indicates that the long occupies an absolute advantage, and the short is difficult to organize effective resistance.

bald bare foot yin lineIt refers to the K-line opening price is the highest price, and the closing price becomes the lowest price of the day, the K-line only entity has no upper and lower shadow.

Bald barefoot yin line means that the short head from the opening accounted for an absolute advantage, no limit price crazy to throw stocks, causing panic psychology. The market was one side down, and the long could not resist.

During the actual movement of the price, bald foot patterns can appear at the top of an uptrend, the bottom of a downtrend, or the middle of the trend. The meaning of the bald barefoot appears in different positions.

whilstBaldheaded Barefoot Sun WireWhen it appears on an uptrend, this may indicate that the trend will continue. But when it appears at the end of a downtrend, this may imply that the trend may be reversed.

whilstbald bare foot yin lineWhen it appears on a downtrend, this may indicate that the trend continues. But when it appears at the end of a downtrend, this may imply that the trend may be reversed.

How to recognize bald bare feet?

• Identify trends

The bald barefoot pattern can appear at the top of an uptrend, a downtrend bottom, or the middle of a trend.

In an uptrend, bald bald sun may mean trend continuation, while in a downtrend, it means trend reversal. For bald barefoot yin line, the situation is just the opposite.

Therefore, when performing technical analysis, it is necessary to identify the price trend before the candlestick pattern appears.

• Find the bald bare foot pattern

When identifying the bald foot K-line pattern, you need to pay attention to the following characteristics:

• There are obvious entities.

• There are no upper and lower shadows.

• The color of the solid can be either positive or yin. The color of the K-line is important because it represents a completely different meaning.

• The longer the physical length, the stronger the price trend in the future.

It is worth noting that the perfect bald foot pattern is very rare in real market conditions. Therefore, when identifying bald bald patterns, minor differences between the open/close and high/low prices are sometimes ignored.

• Use with other indicators

When using a bald bare foot pattern as a reversal or continuation signal, it needs to be used with other technical indicators, such as support and resistance, trend lines, and other candlestick patterns.

case analysis

Below, we take the weekly K-line chart of PayPal (PYPL) as an example of bald foot pattern that appeared in 2021.

• On the chart, you can see that after a wave of stock prices rose, there appeared a bald barefoot big yin line. This shady line indicates a strong sentiment in selling and may indicate a potential trend reversal.

• To confirm this signal, you can match other technical indicators such as support and resistance levels. You can find that before the appearance of bald barefoot big yin line, the stock price has risen to the previous high, that is, resistance. These indicators, combined, imply that stocks may have a retraced or trend reversal.

• Over the next few weeks, shares continued to decline, confirming a trend reversal signal.

summed

The bald foot K-line form can provideTrend Reversal or ContinuationThe signals, depending on where they appear and market sentiment.

This pattern helps investors identify potential buying or selling opportunities.

Like all technical indicators, bald bald pattern should be used with other signals and indicators before making a trading decision.